If Google refuses to comply, the Commission could slap Google with antitrust charges and, eventually, fines.
“Today I’m giving Google an opportunity to offer remedies to address concerns that we have identified,” said European Commission Vice President for Competition Policy Joaquin Almunia in a statement issued Monday.
Europe began looking into Google’s search results in November of 2010, after Microsoft and other smaller firms complained that the U.S.-based search giant was giving its own products a higher-than-natural ranking in web searches while decreasing the rank of competitors’ services. Google has been fighting hard against the antitrust claims.
Almunia specified four areas where Google must change in order to avoid financial penalties in a letter he sent to Google executive chairman Eric Schmidt:
1. Google’s displaying of links to its own specific search products, such as Google News, in general search results, which the Commission argues reduces competition.
2. Google’s taking of content, such as restaurant reviews from other services, for its own products, which the Commission believes might reduce the creation of original content on the web.
3. Google’s exclusive advertising deals with partners, which the Commission worries unfairly squeezes out Google’s competition.
4. Google’s limitation on data being transferred from AdWords to competitors’ services, which the Commission said limits software developers’ ability to create products that utilize cross-platform search advertising.
Should Google comply with that list of grievances, said Almunia, it can avoid immediate formal antitrust proceedings in Europe.
“If Google comes up with an outline of remedies which are capable of addressing our concerns, I will instruct my staff to initiate the discussions in order to finalize a remedies package,” said Almunia. “I hope that Google seizes this opportunity to swiftly resolve our concerns, for the benefit of competition and innovation in the sector,” he added.
Google made its disapproval of the Commission’s arguments known through a spokesperson.
“We’ve only just started to look through the Commission’s arguments,” said a Google spokesperson. “We disagree with the conclusions but we’re happy to discuss any concerns they might have. Competition on the web has increased dramatically in the last two years since the Commission started looking at this and the competitive pressures Google faces are tremendous. Innovation online has never been greater.”
Do you think agree with the European Commission’s assessment of Google’s business practices? Sound off in the comments below.
Image courtesy of iStockphoto, Alija
More About: Antitrust, europe, Google, World
